20-40% performance fee (with high watermark) for Forex traders

SaltyWaters posted:
This is a report from one of my Live/Real Accounts. The total number of pips made by the 40 trades shown in the picture are in the picture if you look at the Equity it shows 120579 because of the 5 digit broker so you take one digit off and the Total pips made is 12057 since the beginning of the year.

Thanks for the prompt reply! The picture provided is misleading at best. Equity and Balance mean, to every trader I know, the amount of money you have in your account, not pips realized through trading.

The second picture you have attached seems to be a MetaTrader report. If that's the case, you'll have a much more convincing proposition by linking your account to Myfxbook and verifying it. From the report you provided, I cannot get any of the metrics I'm calculating to evaluate trading systems.

Take care,

Remus

Hey Remus

Ben of FXTopGunTrading, thanks for adding my system to your watch list and explaining the Pip Expectancy/Ratio. Yes, I understand I have only one month of data for you to look over and that more time and trades are needed, no problem. I will continue posting my trades here at myfxbook.

Thanks...
Ben Williams

SaltyWaters posted:
    

NextLevelForex posted:
    

SaltyWaters posted:
This is a report from one of my Live/Real Accounts. The total number of pips made by the 40 trades shown in the picture are in the picture if you look at the Equity it shows 120579 because of the 5 digit broker so you take one digit off and the Total pips made is 12057 since the beginning of the year.

Thanks for the prompt reply! The picture provided is misleading at best. Equity and Balance mean, to every trader I know, the amount of money you have in your account, not pips realized through trading.

The second picture you have attached seems to be a MetaTrader report. If that's the case, you'll have a much more convincing proposition by linking your account to Myfxbook and verifying it. From the report you provided, I cannot get any of the metrics I'm calculating to evaluate trading systems.

Take care,

Remus

It's showing in pips because I have the option to show it in either way. In this case it was set to show how many pips I have realized (Equity) and how many I have done in Total (Balance). It's just a matter of switching it to dollars.
In pips I can see the pair's performance in pips.

I don't want to connect my platforms to Myfxbook because how do I know if there isn't a script that will read all my MT4 folders and copy my code.

Anyhow I should mention, the fee that I do charge is 25% for the investor and 75% for my work.


Cheers,

Salty

if your harddrive is not shared they cant read anything from it. fyi

I hate math, really hate :(

Is my calculation correct??

Here's my data on (9/3) :

total trade : 500
total pips gain : 13463
averages win pips : 45.59
averages loss pips : 60.45

Pip expectancy : 13463/500 = 26.92
Expectancy ratio : 26.92/60.45 = 0.44

It's good or bad trades??

my account : https://www.myfxbook.com/members/copett/opera-van-java/107647


Thanks for your help :)

regards,

copett

FXTopGunTrading posted:
Yes, I understand I have only one month of data for you to look over and that more time and trades are needed, no problem. I will continue posting my trades here at myfxbook.

Sounds good, Ben! If your performance is consistent, you'll hear from me pretty soon!

SaltyWaters posted:
I don't want to connect my platforms to Myfxbook because how do I know if there isn't a script that will read all my MT4 folders and copy my code.

Thanks for the details, it makes more sense now.

About connecting to myfxbook: they recently added a new way of publishing your account, where you only need to give them the investor password. No more running anything on your computer! I'm using that for all my accounts, and even though it's in Beta, and sometimes the accounts do not update as expected (every 5 minutes), I really like it since I don't have to maintain my MT4 for myfxbook EA, and use VPS resources for it.

copett posted:
Is my calculation correct??

Pip expectancy : 13463/500 = 26.92
Expectancy ratio : 26.92/60.45 = 0.44

It's good or bad trades??

I checked and yes, your math is correct :)

And just by looking at those 2 metrics, your account performance is very good. I added it to my watch list, and will contact you with more questions, should I decide to consider it for my portfolio.

Thanks for posting, and enjoy your weekend!

.

.

Chikot,

I would like to know how did you see that trades went against him by 500 pips. Did you find him on InstaForex PAMM, where the equity is correctly calculated, not like on myfxbook? Or simply looked at the trades that took a long time, and checked the charts?

About leverage: InstaForex lots mean 10 times less than on 'normal' brokers. So the first trade, with 1.00 lots on EURUSD, means 1 minilot, not 1 full lot. Even 1 minilot is too much for that account, but only the first trade was like that, and I assumed it was a mistake when setting up the EA or entering the trade manually. Since that first trade, I could only spot 3 more trades with 1 minilot, all in the first two weeks of trading. Everything since then was done with 1 or 2 nanolots...

At this point I'm just collecting pointers to supposedly good systems. I'm going to watch them for a while, and if the performance holds, analyze them in more detail. But even at this early stage I appreciate any insight other people, like you, can offer on the systems discussed here.

Thank you very much!

I noticed another account.
Here the screenshort. I noticed some trades were on for days and were closed at small profit or loss. so, i went to gbp/usd chart and checked on time of open and close and what price did in between. price went on few trades pretty far against the trade and more was added. then trades were closed for less loss.
I have been trading long enough to look for such things.
It means no predetermined stop.
last trade had huge leverage. 55 pips 65% + , but it could go another way...
trade that was on 13 days went against position about 500 pips.

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I think due diligence here is important for all involved. Trader should learn as well from others mistakes.
I have my own flaws but I do cut my losses quickly.
I am working on trade quality and hit rate and obviously patience to wait for those.

Chikot, Remus,

Thanks for touching me :)

Okay, let me explain about my trading. Both of you are right. My system need 30.000 pips to work, I use 8 EA's so I need much balance. If Chikot see my trades against me 500 pips, he was wrong!! Absolutely my trades againts me more than 2000 pips.
You can see, on middle August my system bring me down for about 10%.

-Balance $486, equity $440....... so I'm in floating $46.
-lot : 0.02(insta)=0.002 (standard broker)
-Total floating pips : $46/0.02= 2300 pips

If you see my system had large floating minus, you are right. The most important how to keep the equity, not how much floating in pips. Every trader has different strategy :)

Regards,

copett

You are right Copett, regarding equity not pips.

SaltyWaters posted:
My system Pips Expectancy should be: 45.58*81.12%+(-49.95)*18.88%=27.54
Expectancy Ratio = Pips Expectancy / Average Pips Loss = 27.54/49.95=0.55

That's helpful, thanks for the info!

copett posted:
    Chikot, Remus,

Thanks for touching me :)

Okay, let me explain about my trading. Both of you are right. My system need 30.000 pips to work, I use 8 EA's so I need much balance. If Chikot see my trades against me 500 pips, he was wrong!! Absolutely my trades againts me more than 2000 pips.
You can see, on middle August my system bring me down for about 10%.

-Balance $486, equity $440....... so I'm in floating $46.
-lot : 0.02(insta)=0.002 (standard broker)
-Total floating pips : $46/0.02= 2300 pips

If you see my system had large floating minus, you are right. The most important how to keep the equity, not how much floating in pips. Every trader has different strategy :)

Regards,

copett

if with any system price moves against over 100 pips, it is better to go Vegas and try there. there is no guarantie that it will come back. and at that poınt lost will be very dramatic. instead of 2000 pıp stop make it 10000 pıp and wait years with same open trades.:)

We should talk about loss or Drawdown in percentage of NAV, not in pips.

CuongVC posted:
    We should talk about loss or Drawdown in percentage of NAV, not in pips.

% depends on
- equity
- trade amount
and this is relative.

if discussing on a single system with agreed lots and equity values for both sides that is ok. but for general discussion like happening here pips is the only value that is not relative.

regards

We all care about making money grow. The parameter to measure that is how many percentage per month or per year. That is why we have interest. Interest is how many percentage per year we have to pay the bank when we borrow money from them. With this, we know where the money grow the fastest.

Pips has some meaning but we can not just look at pips and say this system is better than that system,... We need to look at NAV curve, DD%, sharpe ratio.

Have a good strategy.